Brown-Forman Corporation (BF.B), headquartered in Louisville, Kentucky, is a leading producer and marketer of premium alcoholic beverages, renowned for its iconic portfolio of brands. With a market cap of $16.3 billion, Brown-Forman offers a diverse range of products, including whiskey, vodka, tequila, and liqueurs, with flagship brands like Jack Daniel’s, Woodford Reserve, and Herradura. The company is set to announce its Q3 earnings on Wednesday, Mar. 5.
Ahead of the event, analysts expect Brown-Forman Corporation to report a profit of $0.47 per share on a diluted basis, down 21.7% from $0.60 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
The company delivered an EPS of $0.55 in the last reported quarter, surpassing the consensus estimate by 7.8%. Brown-Forman's Q2 earnings beat was driven by strong premium spirits demand and favorable pricing.
For the full year 2025, analysts expect BF.B to report EPS of $1.80, down 15.9% from $2.14 in fiscal 2024.
Brown-Forman's shares have declined 39.2% over the past 52 weeks, significantly underperforming the broader S&P 500 Index's ($SPX) 22.9% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 10.2% returns over the same time frame.
Following the release of its Q2 earnings results on Dec. 5, Brown-Forman's stock jumped 10.7%. The company's net sales for the quarter declined 1.1% compared to the previous year, totaling $1.1 billion.
For fiscal 2025, the company expects organic net sales and operating income growth between 2% and 4%, driven by gains in international markets and normalizing inventory trends. However, macroeconomic and geopolitical uncertainties are anticipated to pose challenges. The capital expenditures are now estimated to range from $180 to $190 million, down from the previous forecast of $195 million to $205 million.
Analysts’ consensus opinion on BF.B stock is cautious, with a “Hold” rating overall. Out of 16 analysts covering the stock, three advise a “Strong Buy” rating, 10 give a “Hold” rating, and three recommend a “Strong Sell.”
The average analyst price target for BF.B stands at $44.91, suggesting a remarkable upside potential of 30.2% from current price levels.
